CHASE - CREDITCARDS

Comparing Credit Cards

With all of the credit card offers out there, it may be difficult for you to tell which card is right for you. Make sure you shop around when looking for a credit card. Look carefully at fees, interest rates, benefits, and rewards programs in order to find the card that best suits your needs. The following list of credit card questions will help you determine what is best for you.

What kind of card are you looking for?

There are three main types of credit cards.

• Secured--Consumers with bad credit, or no credit, can take advantage of this kind of card. They require a security deposit.

• Regular--These cards do not require a security deposit and often have a higher limit than secured cards. However, they lack the features and member benefits of premium cards.

• Premium--Often called gold or platinum cards, premium cards have higher credit limits. They typically offer features like travel insurance.

What kinds of fees are there?

When you look over credit card offers, be sure to read carefully. Some cards have annual fees. Some may charge you for going over your limit, making a late payment, or transferring your balance.

How does the credit card company calculate finance charges?

This is what credit card companies charge you to use credit. They base it on annual percentage rate (APR) and your outstanding balance. Since companies have different ways of calculating outstanding balances (over one or two billing cycles, using average daily balance, etc.), what you end up paying can vary greatly. Some companies also have a minimum finance charge.

As you compare credit cards, it is vital that you examine your own spending habits. If you know you will be able to pay off your balances monthly, for example, you should be looking at different cards than someone who only pays the minimum amount each month.

What level of interest will cost you less?

Consider how much of your bill you plan to pay each month. If you do not plan to pay off your entire balance each month, you may want to look at a card with a low interest rate. If you always pay off your monthly balance, interest rate will not be as important a factor. Some cards offer 0 percent APRs for up to a year when you first sign up, but the rate then goes up when the specified time ends.

What kind of credit limit will you need?

Some credit card companies use your credit history to determine the maximum amount of money you can charge, while others have preset limits.

How long of a grace period do you need?

If you are concerned about your ability to pay your bill in full, you should pay attention to this. If you cannot pay in full before this period ends, a finance charge will apply.

Which rewards programs would benefit you most?

Usually, people with good credit can take advantage of rewards cards. There is a vast array of rewards programs out there. Rewards cards offer frequent flyer miles, cash back, points programs, and free car rental insurance, among other incentives.

Will you be using cash advances?

If you expect to use cash advances frequently, you should pay attention to accessibility (for example, can you use an ATM to obtain one?), APR (since interest rates are higher for cash advances), how the credit card company will credit your payment, and limits for cash advances.

Putting it all together

While it may seem like a lot to consider, it really boils down to knowing your spending habits. Asking yourself – and the credit card companies – the right questions will save you money and protect your credit rating.

More General Credit Information